“A revolutionary program, one of the best initiatives that the real estate market has experienced for years,” admits Mirosław Król, a real estate market expert. A quarter has passed since the program came into effect. It is undeniably a “game changer” that revived the real estate market after several months of stagnation. Since July, more apartments are being sold, and the number of applications is counted in tens of thousands.
Experts are positive about the program, but banking processes are already congested
The Safe Loan 2% program is an initiative that allows taking a loan with government subsidy. For a decade, the interest on the loans are conditionally waived. The program allows for the purchase of apartments on the developer, secondary or even self-build market. As predicted, the program enjoys record-breaking interest, and banks are waiting to handle at least…. Tens of thousands of applications.
The program has changed the landscape of both the real estate sales market and the rental market, where a striking change can be seen, for example, in the quantity of apartments rented by families.
“The Safe Loan 2% program can be said to have blocked banking processes. The wait for loan approval is long and there is no indication that this will change. At first, you had to wait two weeks for the bank’s agreement, but now it is a matter of two to three months. Of course, this means that the transaction price of the apartment is often different than at the time of making the decision. We have already encountered situations where the price of real estate has been increased while waiting for the bank to grant a loan,” admits Mirosław Król, a real estate market expert.
The expert adds that both real estate market specialists and consumers rate the program positively.
“The only disadvantage is the waiting time, as it seems that banks were not prepared for such a wave of interest. Should we be surprised by the interest? No. Poles have been waiting for the opportunity to buy apartments and improve their financial and credit situation. The situation in the banks is the result of their impatience,” adds Mirosław Król.
Prices going up, especially in new investments
What changes are already visible in the real estate market? Prices will rise, although this is more noticeable in the developer market than the secondary one. Major changes are yet to be seen in the rental market, where an upward adjustment is taking place for studios, and other rental apartments are even cheaper than last year.
“The demand index for Mortgage Loans rocketed by over 300% since July. With such statistics, there is no chance for property prices to remain at an unchanged level. Of course, developers will raise prices, although for now, this is happening cautiously. Higher prices are already visible in new investments; when a new estate appears or new phases of investments are handed over, they are certainly higher. Those apartments that were previously available have similar prices as at the beginning of the year,” adds Mirosław Król.
In the secondary market, prices will rise more slowly.
“Some tried to sell an apartment for almost a year. Now, at last, something is moving and there is interest in less prestigious locations or apartments requiring renovation,” adds Mirosław Król.
